P.R. Laws tit. 26, § 1133
(1) The lawful beneficiary, assignee, or payee of a life insurance policy (other than an annuity contract), heretofore or hereafter effected by any person on his own life, or on the life of another, in favor of a person other than himself, shall be entitled to the proceeds and avails of the policy against the creditors and representatives of the insured and of the person effecting the insurance, and such proceeds and avails shall also be exempt from all liability for any debt of such beneficiary existing at the time the proceeds and avails are made available for his use.
(2) The provisions of subsection (1) shall apply:
(a) Whether or not the right to change the beneficiary is reserved or permitted in the policy, and
(b) whether or not the policy is made payable to the person whose life is insured, or to his estate, if the beneficiary, assignee, or payee shall predecease such person; except, that this clause shall not be construed so as to defeat any policy provision for other disposition of proceeds in event the beneficiary predeceases the insured.
(3) For the purposes of subsection (1) a policy shall also be deemed to be payable to a person other than the insured if and to the extent that a facility-of-payment clause or similar clause in the policy permits the insurer to discharge its obligation after the death of the individual insured by paying the death benefits to the person permitted by such clause.
(4) This section shall not apply as to a debt secured by a pledge of the policy, rights under the policy assigned, and to advance payments made on or against the policy.
(5) Benefits payable to the insured under any such policy in periodic installments, whether or not involving life contingencies, shall be governed by § 1135 of this title.
(6) No person shall be compelled to exercise any rights, powers, options, or privileges under any such policy.
History —Ins. Code § 11.330.